Profitability of Russian agriculture declines to 18% in 2024 - Agriculture Ministry

MOSCOW. Feb 14 (Interfax) - Profitability of Russian agriculture averaged 18% across the industry in 2024 versus 19% in 2023.

"We see that we finished 2024 well, with an average profitability rate of 18%, and the profitability level was even higher than 30% in some industries," First Deputy Agriculture Minister Yelena Fastova said at the Where the Margin is 2025 conference on Friday in Moscow.

Profitability was 19% in 2023.

Fastova said that profitability in the main industries has remained at the same level. "However, there are industries where we see growth in profitability, and these are mainly livestock industries, namely pig farming, and dairy," she said.

"No, we will not introduce a profit tax," Fastova said in response to a question from a conference participant about the prospects of introducing a profit tax in the industry. She said that the industry defended the profit tax benefit. "Therefore, we have used it and will continue to use it, since the benefit is not limited by time, it is timeless," she said.

The industry pays a single agricultural tax. The condition for switching to it is that the share of agricultural products in the total income from its sale must be at least 70%.

The basic rate of agricultural tax is 6% of the difference between income and expenses. Regional authorities can reduce the rate to 0% through their laws.